Online gambling firm Sportingbet has confirmed its board has rejected a £350m bid from high street bookie William Hill saying it significantly undervalues the business.
The 52.5p a share deal, which was put to Sportingbet in a joint bid with William Hill and Gaming VC – an AIM-listed online gambling firm based in Jersey, consisted of 45p in cash from the former and 7.5p in shares of the latter.
In a statement to the stock market, Sportingbet said:
"The Board of Sportingbet has responded that this indicative offer significantly undervalues the business and its future prospects.
"This announcement is made without the consent of the potential offerors. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made."
William Hill and GVC now have until 5pm on 16 October to put up or shut up with a new bid.
It is thought the UK's biggest bookmaker is now weighing up an increased £400m offer as it looks to expand its online operation through acquisitions rather than organic growth.
Rival Ladbrokes, which held failed takeover talks with Sportingbet last year, has suffered in recent months when its own online overhaul was widely condemned after delays.
Analysts believe Sportingbet will succumb to an approach above 60p a share as the shareprice has more than doubled in the last four-and-a-half months.
Shares are up today by 1p, 1.9%, at 52.4p. While William Hill is up 2.7p, 0.9%, at 319.5p and GVC is down 5p, 2.2%, at 219.1p.
William Hill and GVC have not yet commented.
